SUNDRE - Two of the town's accredited daycare centres — a for-profit business as well as a non-profit program — are not anticipating a substantial impact as a result of provincial government cuts to grant funding.
A Dec. 11 letter sent to childcare organizations across the province from Alberta Children’s Services stated the Benefit Contribution Grant and the Staff Attraction Incentive programs would be discontinued April 1, 2020.
“Wage top-ups and professional development funding will continue to be directed to the recruitment, retention and ongoing training of certified staff working in licensed daycare centres, out-of-school care programs and contracted family day home agencies that participate in accreditation,” reads a portion of the letter.
“At the same time, there will be modifications to our activities to ensure long-term sustainability of our programs and services.”
The Benefit Contribution Grant (BCG) was meant to target the contributions that are the result of additional staff support funding that is also paid for by the government. It was designed to offset the costs of mandatory employer payroll contributions like the Canada Pension Plan, Employment Insurance, vacation pay and statutory holiday pay.
“The BCG is paid at a set rate of 16 per cent based on the accreditation wage top-ups and staff attraction incentive allowance payments,” states the letter.
The Staff Attraction Incentive program gave new, qualified staff members a bonus $2,500 at the end of a year of employment, up to $5,000 upon completing two years.
“Child care staff with approved applications as of March 31, 2020 will be paid out upon meeting the required 12 or 24 month work commitment up to June 30, 2022,” reads the letter, adding no new applications will be processed after April 1, 2020.
Korie Graham, who owns and operates the Mount Imagination Childcare Centre, did not express any grievous concerns last week during a phone interview.
Mount Imagination has been around almost 12 years, of which Graham has been the owner for 11.
“The minimal part that’s affecting me personally as business owner, isn’t going to affect my staff,” said Graham, referring to the BCG.
“It will cost me a bit in the end, but won’t affect my price for kids.”
As for the staff attraction grant, she said, “I’ve never had to use the incentive program.”
However, as of Jan. 1 the government also cut a preschool program subsidy for stay-at-home parents. While that won’t impact her operations, Graham said some parents could be left scrambling.
“It’s a little disappointing for children,” she said.
“There’ll be a lot of kids that don’t go to preschool because their parents can’t afford it.”
Overall, she said the situation remains business as usual, but added the government’s decision “could hurt parents who can’t afford the programs.”
Meanwhile, at Sundre Daycare Centre, which is a non-profit organization run by a board of directors, treasurer Kim Free, who has also previously served as president, said the cuts are not expected to have a substantial impact on their budget.
The staff attraction incentive was intended to help daycares hire new and experienced staff who already have a background. But that is never the case when hiring in such a small community like Sundre, where people are more likely to be locally hired and trained on the job, said Free.
And since Sundre Daycare Centre had not been receiving the BCG, there won’t be an impact on the bottom line, she added.
While the centre did not get much funding from the two grants, Free said the organization does benefit from the wage top-up.
“Because we’re accredited, our staff get a substantial wage top-up from the government. The wage top-up seems to be staying — I didn’t see anything in the letter that they’re taking it away.”
However, like most non-profit groups, Sundre Daycare Centre is no stranger not only to ongoing financial struggles but especially retaining volunteer board members, she said.
“We only have three at the moment; we’d like five,” she said, adding a larger board makes for a lighter load, and that anyone interested in getting involved can contact the office at 403-636-1088.
Otherwise, she said operations at Sundre Daycare Centre are expected to continue as usual.
For the government’s part, the letter goes on to say that over the next year the Child Care Licensing Act will be reviewed as it is set to expire next fall.
